CPAs | Consultants | Wealth Advisors
CLA OUTLOOK

Key Insights for Sound Financial Strategies

Take steps to prepare for changing scenarios.
Request a Meeting
APRIL 6 WEEKLY INSIGHTS
Small caps outperform through recent market volatility
  • With the first quarter complete, small caps have outperformed, with the Russell 2000 up 1.5% compared to a 3.6% decline in the S&P 500. 
  • Several headwinds facing small businesses are easing as economic activity improves, interest rates decline, and producer inflation moderates. 
  • Small caps continue to play an important role in equity allocations across market cycles, particularly when valuation gaps versus large caps widen. 
  • CLA increased its allocation to small caps at the start of the year, raising exposure from 6% to 8% within our equity exposure. (Source: Morningstar)
Unemployment steady at 4.4% as labor market continues to normalize
  • While monthly jobs numbers have become more volatile, including downward revisions, unemployment remains steady at 4.4%.
  • Job openings came in last week at an estimated 6.88 million, returning to pre-pandemic levels as the stimulus-created surplus has subsided.
  • Layoffs have remained contained consistent with easing wage pressures reinforcing a gradual labor market normalization.
  • The Federal Reserve views current labor market conditions as consistent with its maximum employment mandate supporting a measured and patient stance. (Source: BLS)
Iran conflict continues to shake markets as president addresses nation
  • Last week, investors watched closely for signs of an end to hostilities as President Donald Trump delivered a national address with an important update on Iran.
  • Crude moved higher as global supply continues to be held hostage at the Strait of Hormuz while negotiations offer no clear timeline on the passage’s reopening.
  • Investor sentiment remains cautious amid elevated short-term volatility, though recent market rebounds underscore the importance of staying invested.
  • For long-term investors, disciplined asset allocation, regular rebalancing, and diversification remain key to navigating periods of uncertainty.
  • Energy stocks continue to trend higher highlighting the need to invest across sectors while tilting exposure to energy with dividend growth and small caps. 

Develop strong financial strategies

Tune in to the CLA Outlook for 2026 as we discuss timely topics around policy, the economy, and market performance.
Read the CLA Outlook
Strategic Opportunities

The Big Picture for 2026

The CLA Outlook signals a turning point: stabilized inflation, growth above trend, and easing interest rates. Explore the key forces influencing portfolios in the year ahead.

  • Economic outlook

    Growth is back on the horizon after three years of higher interest rates and restrictive Federal Reserve policies, with AI helping to transform industries.

  • Fiscal policy

    The rising U.S. deficit remains a key concern as government spending continues to outpace revenues — watch for this to be a focal point heading into midterm elections.

  • Fixed income outlook

    Lower interest rates should be a tailwind to bonds in 2026, though consider credit quality and duration when building high-quality income portfolios.

  • Equity outlook

    Despite elevated stock valuations, led by tech-dominant Magnificent-7 stocks, equities remain compelling because of strong earnings growth and a robust economic backdrop.

  • Alternatives outlook

    Lower interest rates favor private equity and private real estate, while private credit can warrant caution. Manager selection and due diligence remain critical.

  • We can help

    No matter your financial position, incorporating sound tax and wealth advisory could help you achieve more.

Request a Meeting

Are you ready to take steps to prepare for your financial future? Please enter or confirm your information below and someone will reach out to schedule your meeting.